Hi. I previously asked the question in the picture attached, and got the answer that is also attached in a picture.

However, while it is a great answer, could you explain why the tradeoff would disappear, when wage setters catch on? I do not understand why it disappears

Can you please explain, the answer to this question my teacher published: Using the information in this chapter, label each of the following statements true, false, or uncertain. Explain briefly. d. Policy makers can exploit the inflation-unemployment trade-off only temporarily. True. In order to have a permanent inflation-unemployment trade-off wage setters need to systematically underpredict inflation, which is unlikely as they will learn over time. What do they mean by this tradeoff? and what do they mean by underpredicting inflation? Thank you.The inflation-unemployment tradeoff is the idea that there is a tradeoff between inflation and unemployment. In other words, as inflation rises, joblessness falls, and vice versa. The tradeoff is only temporary because wage setters will eventually learn to predict inflation correctly, at which point the tradeoff will disappear. What this means is that policymakers can use inflation to lower unemployment in the short run, but that this is not a sustainable solution. In order to keep the tradeoff in place, wage setters must systematically underpredict inflation. This is difficult to do in practice, as they will learn over time and eventually adjust their predictions accordingly. In short they mean that, in the short run, policy makers can use inflation to lower unemployment, but that in the long run this will not work, because wage setters will learn to anticipate inflation and adjust their wages accordingly. Underpredicting inflation means that wage setters do not adjust their wages as quickly as inflation rises. This allows unemployment to fall in the short run, as businesses can afford to hire more workers at the lower wages. However, it is not a sustainable solution, as eventually wage setters will catch up to the true level of inflation and the tradeoff will disappear. In summary, they mean that, in order for the tradeoff to be permanent, wage setters must systematically underestimate inflation. This is unlikely to happen, because they will learn over time and eventually start predicting inflation correctly